Despite a 57% decline in net profit for the December 2024 quarter, Zomato experienced a 64% increase in revenue. This was largely due to investments made in expanding its food delivery business and quick commerce store network. However, the quick commerce segment recorded an EBIT loss of Rs 30 crore, potentially affecting the company's profitability in the coming quarters. Zomato is still on track to reach its goal of 2,000 stores by December 2025, much earlier than its previous guidance of December 2026.
The stocks of Zomato, the popular online food delivery platform, experienced a surge of over 4% in early Friday trading, reaching a new 52-week peak. This growth can be attributed to the company's impressive Q3 results, which showed a significant jump in net profit and revenue. Analysts are optimistic about Zomato's future prospects and have praised its performance across segments, especially its food delivery contribution margin. The company's stocks have risen by 121% in the last year and continue to trade higher on the BSE.